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ABC LTD Solution Solution Solu

Rs. Crore 12mths 12mths 12mths 12mths

Networth 938.10 1261.20 134.44 1712.96 182.60 2102.50

225 225 100.00 225 100.00 225

Issued capital 145.8 199.1 136.56 219.57 150.60 219.5

145.8 199.1 136.56 219.57 150.60 219.5

0 0 #DIV/0! 0 #DIV/0! 0 #D

792.30 1062.10 134.05 1493.39 188.49 1883.00

761.8 1030.5 135.27 1459.4 191.57 1861.7

46 121.2 263.48 178 386.96 194.9

715.8 909.3 127.03 1281.4 179.02 1666.8

29.9 31 103.68 33.39 111.67 20.7

0.6 0.6 100.00 0.6 100.00 0.6

0 0 #DIV/0! 0 #DIV/0! 0 #D

Borrowings 260 186.4 71.69 264.31 101.66 177.2

35.1 3.2 9.12 90.57 258.03 110.9

31.2 3.2 10.26 90.57 290.29 110.9

3.9 0 0.00 0 0.00 0

12.2 8 65.57 4.11 33.69 0.2

0 0 #DIV/0! 0 #DIV/0! 0 #D

18.6 18.5 99.46 17.78 95.59 0

91.3 87.3 95.62 86.72 94.98 5.2

1.5 0 0.00 0 0.00 0

15 0 0.00 0 0.00 0

86 3 69 4 80 42 65 13 75 47 60 9

Dec-06 Dec-07 Dec-08 Dec-09

Authorizedcapital

Paid-up equity

Preferencecapital

Reserves &surplus

Free Reserves

Sharepremiumreserves

Other FreeReserves

Specificreserves

Revaluationreserves

Accumulatedlosses

Bankborrowing

Short-termbankborrowings

Long-termbankborrowings

Financialinstitutionalborrowings

Govt./salestax deferralborrowings

Debentures/bonds

Fixed deposits

Borrowingsfromcorporatebodies

Commercialpaper

Other

http://www.icmrindia.org/free%20resources/casestudies/finance8.htm#_ftn1http://www.icmrindia.org/free%20resources/casestudies/finance8.htm#_ftn1

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Let us understand how the above financial ratios are calculated using the

balance sheet and income statement of ABC Ltd, the largest fast moving

goods company in India.

ABC LTD

12mths

Gross fixed assets 1047.90

Land & building 223.70

Plant & machinery 628

Other fixed assets 102.4

Capital WIP 93.8

326.4Net fixed assets 721.50

Revalued assets 0.6

Investments 328.6

In group/associate cos. 191.8

In mutual funds 2.7

Other investments 134.1

Marketable investment 76.3

Market value of quoted investment 215.3

Deferred tax assets 0Inventories 903.9

Raw materials and stores 389.8

Raw materials 366.3

Stores and spares 23.5

Finished and semi-finished goods 514.1

Finished goods 470

Semi-finished goods 44.1

Other stock 0

Receivables 720.8

Sundry debtors 143.5

Debtors exceeding six months 30.3

Accrued income 9.3

Advances/loans to corporate bodies 30.6

Group/associate cos. 30.6

Other cos. 0

Deposits with govt./agencies 16.8

Dec-06

Rs. Crore[1]

Less: cumulative depreciation

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Advance payment of tax 0

Other receivables 520.6

Cash & bank balance 203.3

Cash in hand 0.5

Bank balance 202.8

Intangible assets (not written off) 0

Intangible assets (goodwill, etc.) 0

TOTAL ASSETS 2878.10

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INCOME STAT

ABC Ltd.

Rs. Crore 12mths 12mths

Income 7137.8 8363.3

Other income 106.7 165.2

Change in stocks

Non-recurring income

Expenditure

Raw materials, stores, etc.

Wages & salaries

Energy (power & fuel)

Indirect taxes (excise, etc.)

Dec-06 Dec-07

15.2 46.4

137.8 50.4

4533.4 5201.9

385 448.7

105.8 110.8

577.1 626.5

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Advertising & marketing expenses

Distribution expenses

Others

Non-recurring expenses

Profits/losses

PBDIT

Financial charges (incl. Lease rent)

PBDT

Depreciation

PBT

Tax provision

PAT

Appropriation of profits

DividendsEquity dividend

Dividend tax

Retained earnings

283 490.6

279.2 289.1

386.6 474.9

139.9 54

707.5 928.8

57 33.8

650.5 895

55.2 57.9

595.3 837.1

192.55 270

402.8 567.1

261.9 372.44249 338.5

12.9 33.9

140.9 194.7

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consumer

BALANCE SHEET OF ABC LIMITED - Base Year as 2006

Solution Solution

12mths 12mths

1122.80 107.15 1364.4 130.2 1454.10

278.3 124.41 347.91 155.53 385.6

636.5 101.35 762.28 121.38 779.6

120.9 118.07 163.84 160 185

87.1 92.86 90.37 96.34 103.9

328.8 100.74 400.1 122.58 447.1794.00 110.05 964.3 133.65 1007.00

0.6 100.00 0.6 100 0.6

544.5 165.70 729.51 222.01 1068

253.6 132.22 296.46 154.57 299.1

77.7 2877.78 77.67 2876.67 80.8

213.2 158.99 355.38 265.01 688.1

183.5 240.50 370.5 485.58 523.8

573.7 266.47 645.14 299.65 863.2

0 #DIV/0! 0 #DIV/0! 01044.6 115.57 1145.68 126.75 1309.8

484.2 124.22 560.06 143.68 593.4

455.6 124.38 534.78 146 565.1

28.6 121.70 25.28 107.57 28.3

560.4 109.01 585.62 113.91 716.4

521.2 110.89 548.63 116.73 673.8

39.2 88.89 36.99 83.88 42.6

0 #DIV/0! 0 #DIV/0! 0

582.11 80.76 803.16 111.43 860.4

145.4 101.32 192.94 134.45 233.7

22.8 75.25 14.63 48.28 10.7

8.3 89.25 13.68 147.1 27.4

56.1 183.33 144.07 470.82 51.7

56.1 183.33 144.07 470.82 51.7

0 #DIV/0! 0 #DIV/0! 0

33.5 199.40 35.62 212.02 42.2

Dec-07 Dec-08 Dec-09

12mths

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0.01 #DIV/0! 0 #DIV/0! 0

338.8 65.08 416.85 80.07 505.4

574.5 282.59 659.81 324.55 809.5

2.5 500.00 1.52 304 4.6

572 282.05 658.29 324.6 804.9

0 #DIV/0! 89.47 #DIV/0! 80

0 #DIV/0! 89.47 #DIV/0! 80

3539.71 122.99 4391.93 152.6 5134.70

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EMENT OF ABC LIMITED

12mths 12mths 12mths 12mths

Dec-08 Dec-09 Dec-10 Dec-11

10261.57 10978.3 11458.3 11861.77

183.93 269.3 305.9 283.14

-7.9 128.52 -83.85 -4.63

47.15 14.4 47.8 310.93

6158.31 6548.4 6388.8 6381.54

527.23 584.1 614.3 591.7

118.43 123.1 139.9 152.77

835.44 861.8 870.1 920.66

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676.86 746.5 709.2 835.75

345.77 366.2 446 465.86

544.02 596.9 712.4 761.8

49.43 20.4 20.7 146.01

1229.4 1543.1 1826.8 2195.13

29.28 22.3 13.1 7.74

1200.2 1520.8 1813.7 2187.39

101.05 128.7 130.9 144.66

1099.2 1392.1 1682.8 2042.73

293 318 355 402.42

806.2 1074.1 1327..8 1640.31

531.35 711.09 942.3 1158.31463.46 638.1 770.2 1100.62

67.9 72.9 172.1 57.69

274.9 363.1 385.5 482

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Solution Solution Solution

12mths

138.76 1669.6 159.33 1889.45 180.31

172.37 425.3 190.12 504.97 225.74

124.14 877.6 139.75 1013.71 161.42

180.66 237.1 231.54 260.24 254.14

110.77 129.6 138.17 110.53 117.84

136.98 511.5 156.71 586.9 179.81139.57 1158.1 160.51 1302.55 180.53

100.00 0.6 100.00 0.6 100

325.02 1832.1 557.55 1668.93 507.89

155.94 440.3 229.56 352.6 183.84

2992.59 104.8 3881.48 504.42 18682.22

513.12 1287 959.73 811.91 605.45

686.50 935.6 1226.21 586.83 769.11

400.93 969.9 450.49 593.85 275.82

#DIV/0! 0 #DIV/0! 349.61 #DIV/0!144.91 1181.88 130.75 1240.05 137.19

152.23 539.2 138.33 597.12 153.19

154.27 514.6 140.49 568.31 155.15

120.43 24.6 104.68 28.81 122.6

139.35 638.9 124.28 635.71 123.65

143.36 589.7 125.47 587.99 125.1

96.60 49.2 111.56 47.72 108.21

#DIV/0! 3.78 #DIV/0! 7.22 #DIV/0!

119.37 1054.8 146.34 1268.7 176.01

162.86 264.5 184.32 424.79 296.02

35.31 7.6 25.08 7.82 25.81

294.62 46.4 498.92 45.75 491.94

168.95 291.6 952.94 214.85 702.12

168.95 76.8 250.98 74.85 244.61

#DIV/0! 0 #DIV/0! 0 #DIV/0!

251.19 37.7 224.40 45.73 272.2

Dec-10 Dec-11

12mths

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#DIV/0! 0 #DIV/0! 0 #DIV/0!

97.08 414.6 79.64 537.58 103.26

398.18 522.02 256.77 913.08 449.13

920.00 1.42 284.00 1.34 268

396.89 520.6 256.71 911.74 449.58

#DIV/0! 47.3 #DIV/0! 22.38 #DIV/0!

#DIV/0! 47.3 #DIV/0! 22.38 #DIV/0!

178.41 5796.2 201.39 6765.30 235.06

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INCOME STATEMENT OF ABC LIMI

ABC Ltd. Solution Solution

Rs. Crore 12mths 12mths 12mths

Income 7137.8 8363.8 117.18 10261.57 143.76

106.7 165.2 154.83 183.93 172.38

15.2 46.4 305.26 -7.9 -51.97

137.8 50.4 36.57 47.15 34.22

#DIV/0! #DIV/0!

4533.4 5201.9 114.75 6158.31 135.84

385 448.7 116.55 527.23 136.94

105.8 110.8 104.73 118.43 111.94

577.1 626.5 108.56 835.44 144.77

283 490.6 173.36 676.86 239.17

279.2 289.1 103.55 345.77 123.84

Others 386.6 474.9 122.84 544.02 140.72

Dec-06 Dec-07 Dec-08

Otherincome

Change instocks

Non-

recurringincome

Expenditure

Rawmaterials,stores, etc.

Wages &salaries

Energy(power &fuel)

Indirecttaxes(excise,etc.)

Advertising

&marketingexpenses

Distributionexpenses

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ED - base Year as Dec 2006

Solution Solution Solution

12mths 12mths 12mths

10978.3 153.81 11458.3 160.53 11861.77 166.18

269.3 252.39 305.9 286.69 283.14 265.36

128.52 845.53 -83.85 -551.64 -4.63 -30.46

14.4 10.45 47.8 34.69 310.93 225.64

#DIV/0! #DIV/0! #DIV/0!

6548.4 144.45 6388.8 140.93 6381.54 140.77

584.1 151.71 614.3 159.56 591.7 153.69

123.1 116.35 139.9 132.23 152.77 144.40

861.8 149.33 870.1 150.77 920.66 159.53

746.5 263.78 709.2 250.60 835.75 295.32

366.2 131.16 446 159.74 465.86 166.86

596.9 154.40 712.4 184.27 761.8 197.05

Dec-09 Dec-10 Dec-11

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20.4 14.58 20.7 14.80 146.01 104.37

#DIV/0! #DIV/0! #DIV/0!

1543.1 218.11 1826.8 258.20 2195.13 310.27

22.3 39.12 13.1 22.98 7.74 13.58

1520.8 233.79 1813.7 278.82 2187.39 336.26

128.7 233.15 130.9 237.14 144.66 262.07

1392.1 233.85 1682.9 282.70 2042.73 343.14

318 165.15 355 184.37 402.42 209.00

1074.1 266.66 1327.8 329.64 1640.31 407.23

#DIV/0! #DIV/0! #DIV/0!

711.09 271.51 942.3 359.79 1158.31 442.27

638.1 256.27 770.2 309.32 1100.62 442.02

72.9 565.12 172.1 1334.11 57.69 447.21

363.1 2814.73 385.5 2988.37 482 3736.43